Interactions in Economic Sectors (Game Dynamics)
Across the globe there is great diversity in the rates of economic development, access to energy sources, and social conditions. Yet, the key players in these different sectors are not bound by set behavior patterns and, as a result, the world is driven by highly complex dynamics that are difficult for researchers to understand.
The goal of the Game Dynamics Project is to identify the key trends in these complex interactions through the use of dynamic games theory. There is also a need to go beyond well-developed game-theoretic techniques and develop advanced methods for analysis of the dynamics driven by heterogeneous agents.
Researchers need to take into account such critical features as the diversification of interests, behavioral uncertainty, and clusters of interactions. Diversification of interests is a situation in which each actor has different type of interests—for example, long- or short-term interests or interests expressed through different criteria.
Behavioral uncertainty occurs because an individual actor’s understanding of the interests and behaviors of the other actors is usually based on learning through interaction and may not result in a clear picture. Clusters of interactions emerge with leaders acting in one or several domains. The result is a complex network whose evolution can be looked at as a dynamic “meta-game” – a mosaic of interdependent domain-specific game-type interactions.
The project includes research on:
- Market equilibrium behaviors of heterogeneous agents
- Learning and equilibrium behavior in repeated games.
The project overlaps with the Management of Heterogeneous Dynamical Systems Project.